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Originally Posted by Guest
I hate to get technical. Both of you are confusing production and consumption. GDP is used as a proxy measure of what is produced in a country. If a farmer produces 3 blocks of cheese, one he sells to his neighbor, one the govt buys and gives to someone on welfare and one is sold in Canada. The different ways the cheese is consumed has no effect on the calculation of GDP.
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Quote:
Originally Posted by Guest
Agreed.
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NO AJ, dougie is NOT correct.
The "production" that went into the block the government bought for the poor shouldn't be counted because the money was BORROWED. The poor cost the nation over a $ trillion a year...coincidentally...we go into debt over a $ trillion a year.
You CAN'T count as bona fide production that which relies on debt. Like an equation...you MUST balance it out...and they do not. They don't subtract the debt from the GDP. 10 years ago it wasn't so important...but lately...the deficit has been huge...and it matters.
The government numbers are mostly fake...massaged, seasonal adjustments, adjustments for weather, a disaster...anything it takes to make it look good.